Cost of buying a property?
The following guide will give you a simple breakdown of the costs of buying a property in Cape Verde.
|Property Sales Price||100,000 euros|
|Completion Notary costs (approx. 3.5% of declared value*)||3,500 euros|
|Lawyer costs (approx)||1,000 euros|
|Power of attorney (if made in UK)||250 euros|
*Declared value is the value written on the property deeds. It is the value that all taxes are based upon.
Costs of running a property in Cape Verde
In addition, buyers need to know that there are two on-going operating costs.
- Community fees – monthly fee for maintaining the pool, gardens, cleaning community areas, etc
- Annual Property tax – known as the IUP tax (or council tax) and is paid in the town hall. It changes from time to time but is currently worked out using the following equation
Property (Declared) value x 25% x 85% x 1.5%
100,000 euros x 25% X 85% x 1.5% = 318.75 euros per annum
Owners selling their properties will need to pay the following costs.
- Lawyer fees – can be approx. 700 – 800 euros
- 1% of the declared value to be paid to the notary by the seller.
- Estate Agent Commission
Additional costs will simply be outstanding annual property taxes, any condominium costs and any utility costs (Electric, etc).
Capital gains Tax
Capital Gains Tax in Cape Verde Is 3% of the sale value that exceeds 30% of the value at which they were initially purchased.
For example, a 100,000 euros apartment would need to increase by over 30,000 euros before CGT is paid.
In this example, any gain over 30,000 euros, a 3% of that gain is paid, therefore a property that reaches 135,000 euros would see CGT paid on 3% of 5,000 euros which would be 150 euros (130 GBP).
Any property transmitted by inheritance or by gift is taxed at a flat rate of 3% on the attributed value.